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July 20, 2005
Daily Business Intelligence HR
Oracle HR has a companion product called Oracle Human Resource Intelligence for DBI that provides a one page overview of workforce analysis, workforce distribution and workforce cost. Its key benefit is that it provides a rapid labour analysis with drill down facilities to allow you to explore specific issues that you may identify from the summary charts.
The analysis provided is as follows:
- Headcount and Salary Trend
- Headcount Budget Trend
- Headcount
- Headcount By Country Trend
- Headcount and Salary By Country
- Headcount and Salary
- Annualized Turnover Trend
- Annualized Turnover
On the surface they look useful. Most large companies, however, have long standing benchmarks of workforce performance and workforce demographics and to change measurement techniques effectively invalidates them. It is unclear whether Oracle has aligned these DBI outputs with any recognised HR benchmarking standards. This is not to say, however, that a number of these DBI outputs cannot be configured to reflect your current benchmarking measures and this article looks at, amongst other things, how this is achieved.
All of these reports rely on the accurate maintenance of a data element called HeadCount. This data element is contained within the "Budgets" area and is related to an Assignment.
To effectively utilise the DBI outputs this budget element must be diligently and accurately maintained by your HR operatives when they are commencing new employees and reassigning existing employees.
There are some important implications for the operational usefulness of HR DBI.
Data Quality
Like all reporting, DBI is highly dependant on the quality of data that has been entered and there appears to be no system imperative on HR Operatives to accurately maintain this data element. It may sound cynical but the reality is that data elements that are not essential to the correct payment and costing of an individual are frequently left unmaintained and enforcing their maintenance is an ongoing and problematic activity.
Additionally, individuals can have multiple assignments and there are no restrictions on the sum of the headcounts for the various assignments exceeding one. If each assignment is given a headcount of one then it is not a true headcount because a particular individual may be double or triple counted. To ensure that DBI is providing a meaningful headcount then each assignment that an employee is on must have a fraction in the value column, all summing to one. As I indicated earlier, there is no data integrity checking within the software to ensure this is the case so it will need to be enforced through business process and exception reporting.
HeadCount Vs FTE
In HR benchmarking certain benchmarks only make sense as a headcount. Staff turnover, for example, is primarily interesting because of the embedded separation, recruitment and training costs that it represents. By way of illustration, it does not cost half as much to recruit a person working half time. For benchmarks that deal with raw headcount DBI could prove to be a very useful tool as long as the quality of the data held in the Head Count budget element is maintained through enforcing appropriate business processes.
FTE, or Full Time Equivalent, on the other hand is more meaningful when measuring performance/productivity. Regardless of whether you have ten people on a production line working full time or twenty people working half time, you are interested in the productivity of the production line based on 10 FTE.
DBI is particularly unsuited to this form of reporting for two reasons.
1. There is no method of reporting on FTE since all reporting is done on Head Count.
2. Reporting is aggregated against the person who is nominated as the supervisor of the employee. In a complex environment an employee may spend 0.5 of his time working for one part of the organisation and .5 working for another part. There is no method of representing is more complex work environment within DBI.
The Discoverer Alternative
It would seem that, with the release of Discoverer, that this would provide a competitive alternative for the development of your HR business intelligence facilities. It wins over DBI in three major ways:
1. FTE can be represented as well as Head Count.
2. Measurement of Headcount and FTE can be against base data, eliminating the need to maintain an additional field and eliminating potential data inconsistencies
3. Graphs and reports can be aligned to the HR Benchmarking standards currently in place in your HR department.
The big minus is that there is currently no way to incorporate these on a single page display. This, however, is more cosmetic consideration and the benefits of more accurate and relevant HR reporting far outweigh this cosmetic consideration.
Posted by Chris Padgham at July 20, 2005 08:40 AM
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